Texas independent hits big off Alaska

DALLAS, October 5, 2016 – Privately held exploration and production company Caelus Energy announced a major shallow-water oil discovery offshore Alaska late on Tuesday.

In a press release, the Dallas-based company said the Arctic find, which was made in on its Smith Bay lease, constitutes a “world-class” discovery, and could rank as “one of the largest finds ever in Alaska.” Caelus Energy estimates its acreage could hold in-place reserves of some 6 billion barrels of oil, with an estimated recovery factory of 30-40%. The company also said the Smith Bay development has a production potential of around 200,000 bopd.

“This discovery could be really exciting for the state of Alaska. It has the size and scale to play a meaningful role in sustaining the Alaskan oil business over the next three or four decades,” Caelus Energy CEO Jim Musselman said in a statement, adding that Alaska’s state tax credit programme had been instrumental in the company’s exploration efforts.

Caelus Energy’s exploration programme targeted a Brookian submarine fan complex, with the company’s two wells encountering 55.8 metre and 68 metre of net pay, respectively. A follow-up appraisal programme will see the company drill an appraisal well and acquire fresh 3D seismic data. Caelus Energy will also begin studying the infrastructure requirements to process and feed the oil into the Trans-Alaska Pipeline System.

Image courtesy of Caelus Energy

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